Borrow today for a better tomorrow.

Looking to max out or increase your RRSP contribution at the last minute? The best RRSP strategy is to contribute monthly, but some years, that just isn't possible. You can increase your contribution with an RRSP loan. You can also borrow enough to take advantage of unused contribution room from previous years and get an even bigger tax break.

If you take out an RRSP loan, contribute before the deadline and file your taxes fast; your refund can be directly applied to pay down your loan. It's also a good idea to set a fixed payment schedule to pay down the loan as quickly as possible.

The goal is to get your money into your RRSP, earning a solid return, and maximizing the tax benefit. The faster you pay off what you owe, the less you pay in interest.

Using "good" debt to create assets.

The higher your tax bracket, the more you should consider the benefits of taking out an RRSP loan, particularly if you have substantial contribution room available from previous years. If you take out a loan in February and you don't owe any tax, your RRSP contribution will account for your entire refund. If you immediately put it towards the loan, the balance can be paid off monthly before RRSP season rolls around again.